Octagon 88 Resources Inc. (OTCMKTS:OCTX) Continues Its Slide Towards the Bottom
The stock of Octagon Resources Inc. (OTCMKTS:OCTX) lost another 13% of its value during yesterday’s session. The ticker has been spiraling downwards since mid-May and has lost 60% since briefly touching on $10 back in April. Just in the last two weeks it saw a deflation of nearly 3 dollars, dropping from $6.64 to $3.72.
There is a good reason for investors to be pessimistic about the future of the company as it is nothing but a vehicle for a pump scheme. OCTX intends to operate oil and gas assets in the U.S. and Canada which is the preferred industry if you want to attract unsuspecting investors. Moving disproportionately from the company’s fundamentals the stock even at the current levels is too overpriced. We already covered most of the red flags about OCTX when they were still actively pumped back in May.
As for the results of their business lets turn to the latest quarterly report for the period ending March 31. Back then they had:
- $7233 cash and total current assets
- $31 thousand total current liabilities
- ZERO revenues since inception
- $18 thousand net loss
Seeing these numbers one might wonder what was actually supporting the stock on its climb up the stock chart. Well, that must have been the $66 million listed as long-term investment. But don’t get too impressed by that amount. Most if not all of the sum comes from an agreement with CEC North Star Energy Ltd. According to the terms of the deal OCTX gave 14 million of its common shares that they themselves priced at $4.50 each, or $63 million in total, for 3.1 million CEC North Star’s shares. Which in other words means that the actual value is unknown but more than likely is no where near as much.
Another recent pump that displayed many of the characteristics – landing pages, hard mailers and alert emails, was the one for Polar Petroleum Corp. (OTCMKTS:POLR). SEC were even forced to intervene and suspend the stock. Yesterday Creative Edge Nutrition, Inc. (OTCMKTS:FITX) had an even more horrendous session than OCTX and dropped by 43% on massive sales of shares. Northumberland Resources Inc (OTCMKTS:NHUR) also keeps losing value albeit on a smaller scale.
For now OCTX is likely to continue correcting even further unless another round of promotions isn’t initiated.
